Australian first home buyers have now reserved all of this financial year’s First Home Loan Deposit Scheme guarantees.
Federal Member for Bonner Ross Vasta MP said this was a major milestone for the Scheme which was a key election commitment of the Morrison Government to help Australians get into their first home sooner.
“Saving a deposit for your first home can be a real struggle, with most banks and lenders requiring a 20 per cent minimum deposit, or forcing borrowers to pay tens of thousands of dollars extra with mortgage insurance,” Mr Vasta.
“I am so please this Morrison Government scheme has provided 10,000 Australians with the opportunity to purchase their first home with a deposit of as little as five per cent with the First Home Loan Deposit Scheme offering a guarantee on the loan.
“Although all the places have been reserved, from July 1, the scheme will be back up for grabs so I encourage those in Bonner saving for their first home to speak to their bank or lender about taking part.”
National Housing Finance and Investment Corporation (NHFIC) data shows applications for guaranteed loans are being received from all parts of our community, be it in our capital cities, regional centres or rural areas.
Intended purchase location data presently shows the following amount of guarantees have been secured in each state and territory:
- New South Wales: 3,114
- Victoria: 2,306
- Queensland: 2,111
- Western Australia: 550
- South Australia: 413
- ACT: 200
- Tasmania: 183
- Northern Territory: 35
NHFIC data also shows it is Australians on middle incomes who are taking advantage of the Scheme, with the average income of applicants are well below the Scheme’s caps.
The average income of single applicants is $67,387 ($125,000 cap) and for couples $109,525 ($200,000 cap).
The Scheme has proven most popular with first home buyers under the age of 30 years of age who have secured 58 per cent of guarantees.
Another positive Scheme outcome is the fact that 12 per cent of guarantees have been secured by Australians over the age of 40.
This is a clear indication Scheme is helping Australians who are a bit older and may have struggled in the past to get a deposit together.
Also, the largest amount of applications for guarantees, 44 per cent, have been made through mortgage brokers.
Despite the COVID-19 health crisis causing a slight flattening of demand in the Scheme in mid-March, first home buyers have shown huge confidence in the housing market and have moved quickly to secure the remaining guarantees available before the 30 June deadline.
On 1 July 2020, a further 10,000 guarantees will become available to first home buyers, and given buyer’s initial reception of the Scheme they will be highly sought after.
For more information on the First Home Loan Deposit Scheme visit: https://www.nhfic.gov.au/whatwe-do/fhlds/